Time Warner Publishing Down in Revenue, Profit
But magazine Web sites show solid growth in first quarter.
Time Warner’s publishing operations generated $1.048 billion in the first quarter of 2007, accounting for 9 percent of overall revenue, and down slightly from $1.063 billion in the first quarter of 2006. However, operating income before depreciation and amortization fell 28 percent to $84 million.
Advertising revenue grew 3 percent to $554 million in the first quarter, driven primarily by online properties, particularly People.com, CNNMoney.com and SI.com. The company also reported a decrease in print advertising revenues, although some of Time’s leading print brands showed an uptick in revenue, if not pages, according to Publisher Information Bureau. People saw ad revenue jump 8.2 percent to $206 million, despite a 0.7 percent drop in pages, and Sports Illustrated was up 6.7 percent to $161 million in revenue, despite a 0.8 percent decline in ad pages. Fortune fell 5.4 percent in revenue to $49.2 million in ad revenue while Time dropped 11.6 percent to $112.6 million in ad revenue.
Content grew 18 percent to $13 million as a revenue stream, while subscriptions fell 1 percent to $356 million, due to slower newsstand sales and the closure of Teen People in September 2006.
Since January, Time has eliminated 290 jobs, or 2.8 percent of its employees. In March, the company sold 18 Time4Media titles to The Bonnier Group, and folded Life, which it had attempted to revive as a newspaper supplement.
Time Warner Publishing Operations
*Before Depreciation and Amortization
Source: Time Warner 10Q Report